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 The United States Telecom Association has filed a lawsuit to overturn the net neutrality rules set by the Federal Communications Commission this past February. In its Monday morning Press Release USTelecom, who represents Verizon and AT&T among others, said it filed a lawsuit in the US Court of Appeals for the District of Columbia joining a similar law suit filed by Alamo Broadband Inc.

The Federal Communications Commission (FCC) published its net neutrality rules in the Federal Register on Monday and, according to procedure, that began a 60-day countdown until they go into effect (June 12). Their publication also opened a 30-day window for Internet service providers to appeal.  USTelecom and Alamo Broadband wasted no time.  USTelecom filed a previous action preserving the issue according to local court rule prior to the formal petition in March.

The rules, which were voted on in February, reclassify broadband under Title II of the 1934 Communications Act and require that ISPs transmit all Web traffic at the same speed. Over 400 pages long, USTelecom filed a CD of the rules as an exhibit with its action. This suit is predicted to be the first of many, as broadband groups like AT&T to congressional Republicans have signaled that they plan to fight the decision.

The first (and thus far only) roll-back of post-9/11 surveillance authorities was implemented over the weekend: The National Security Agency shuttered its program for collecting and holding the metadata of Americans’ phone calls under Section 215 of the Patriot Act. While bulk collection under Section 215 has ended, the government can obtain access to this information under the procedures specified in the USA Freedom Act. Indeed, some experts have argued that the Agency likely has access to more metadata because its earlier dragnet didn’t cover cell phones or Internet calling. In addition, the metadata of calls made by an individual in the United States to someone overseas and vice versa can still be collected in bulk — this takes place abroad under Executive Order 12333. No doubt the NSA wishes that this was the end of the surveillance reform story and the Paris attacks initially gave them an opening. John Brennan, the Director of the CIA, implied that the attacks were somehow related to “hand wringing” about spying and Sen. Tom Cotton (R-Ark.) introduced a bill to delay the shut down of the 215 program. Opponents of encryption were quick to say: “I told you so.”

But the facts that have emerged thus far tell a different story. It appears that much of the planning took place IRL (that’s “in real life” for those of you who don’t have teenagers). The attackers, several of whom were on law enforcement’s radar, communicated openly over the Internet. If France ever has a 9/11 Commission-type inquiry, it could well conclude that the Paris attacks were a failure of the intelligence agencies rather than a failure of intelligence authorities. Despite the passage of the USA Freedom Act, US surveillance authorities have remained largely intact. Section 702 of the FISA Amendments Act — which is the basis of programs like PRISM and the NSA’s Upstream collection of information from Internet cables — sunsets in the summer of 2017. While it’s difficult to predict the political environment that far out, meaningful reform of Section 702 faces significant obstacles. Unlike the Section 215 program, which was clearly aimed at Americans, Section 702 is supposedly targeted at foreigners and only picks up information about Americans “incidentally.” The NSA has refused to provide an estimate of how many Americans’ information it collects under Section 702, despite repeated requests from lawmakers and most recently a large cohort of advocates. The Section 215 program was held illegal by two federal courts (here and here), but civil attempts to challenge Section 702 have run into standing barriers. Finally, while two review panels concluded that the Section 215 program provided little counterterrorism benefit (here and here), they found that the Section 702 program had been useful.

There is, nonetheless, some pressure to narrow the reach of Section 702. The recent decision by the European Court of Justice in the safe harbor case suggests that data flows between Europe and the US may be restricted unless the PRISM program is modified to protect the information of Europeans (see here, here, and here for discussion of the decision and reform options). Pressure from Internet companies whose business is suffering — estimates run to the tune of $35 to 180 billion — as a result of disclosures about NSA spying may also nudge lawmakers towards reform. One of the courts currently considering criminal cases which rely on evidence derived from Section 702 surveillance may hold the program unconstitutional either on the basis of the Fourth Amendment or Article III for the reasons set out in this Brennan Center report. A federal district court in Colorado recently rejected such a challenge, although as explained in Steve’s post, the decision did not seriously explore the issues. Further litigation in the European courts too could have an impact on the debate.

Now that the United States government has cracked open an iPhone that belonged to a gunman in the San Bernardino, Calif., mass shooting without Apple’s help, the tech company is under pressure to find and fix the flaw.But unlike other cases where security vulnerabilities have cropped up, Apple may face a higher set of hurdles in ferreting out and repairing the particular iPhone hole that the government hacked.The challenges start with the lack of information about the method that the law enforcement authorities, with the aid of a third party, used to break into the iPhone of Syed Rizwan Farook, an attacker in the San Bernardino rampage last year. Federal officials have refused to identify the person, or organization, who helped crack the device, and have declined to specify the procedure used to open the iPhone. Apple also cannot obtain the device to reverse-engineer the problem, the way it would in other hacking situations.

It finally happened. The feds forced an Apple iPhone X owner to unlock their device with their face.A child abuse investigation unearthed by Forbes includes the first known case in which law enforcement used Apple Face ID facial recognition technology to open a suspect's iPhone. That's by any police agency anywhere in the world, not just in America.It happened on August 10, when the FBI searched the house of 28-year-old Grant Michalski, a Columbus, Ohio, resident who would later that month be charged with receiving and possessing child pornography. With a search warrant in hand, a federal investigator told Michalski to put his face in front of the phone, which he duly did. That allowed the agent to pick through the suspect's online chats, photos and whatever else he deemed worthy of investigation.The case marks another significant moment in the ongoing battle between law enforcement and tech providers, with the former trying to break the myriad security protections put in place by the latter. Since the fight between the world's most valuable company and the FBI in San Bernardino over access to an iPhone in 2016, Forbes has been tracking the various ways cops have been trying to break Apple's protections.

In September of last year, we noted that Facebook representatives were meeting with the Israeli government to determine which Facebook accounts of Palestinians should be deleted on the ground that they constituted “incitement.” The meetings — called for and presided over by one of the most extremist and authoritarian Israeli officials, pro-settlement Justice Minister Ayelet Shaked — came after Israel threatened Facebook that its failure to voluntarily comply with Israeli deletion orders would result in the enactment of laws requiring Facebook to do so, upon pain of being severely fined or even blocked in the country. The predictable results of those meetings are now clear and well-documented. Ever since, Facebook has been on a censorship rampage against Palestinian activists who protest the decades-long, illegal Israeli occupation, all directed and determined by Israeli officials. Indeed, Israeli officials have been publicly boasting about how obedient Facebook is when it comes to Israeli censorship orders

Facebook now seems to be explicitly admitting that it also intends to follow the censorship orders of the U.S. government.

What this means is obvious: that the U.S. government — meaning, at the moment, the Trump administration — has the unilateral and unchecked power to force the removal of anyone it wants from Facebook and Instagram by simply including them on a sanctions list. Does anyone think this is a good outcome? Does anyone trust the Trump administration — or any other government — to compel social media platforms to delete and block anyone it wants to be silenced? As the ACLU’s Jennifer Granick told the Times: It’s not a law that appears to be written or designed to deal with the special situations where it’s lawful or appropriate to repress speech. … This sanctions law is being used to suppress speech with little consideration of the free expression values and the special risks of blocking speech, as opposed to blocking commerce or funds as the sanctions was designed to do. That’s really problematic.

On the Net Neutrality National Day of Action, Senate and House Democrats introduced a Congressional Review Act (CRA) resolution to overturn the Federal Communications Commission’s (FCC) partisan decision on net neutrality. At a press conference today, Senators Edward J. Markey (D-Mass.), Congressman Mike Doyle (PA-14), Senate Democratic Leader Chuck Schumer (D-N.Y.), and House Democratic Leader Nancy Pelosi (CA-12) announced introduction of House and Senate resolutions to fully restore the 2015 Open Internet Order. The Senate CRA resolution of disapproval stands at 50 supporters, including Republican Senator Susan Collins (R-Maine.). Rep. Doyle’s resolution in the House of Representatives currently has 150 co-sponsors.   The FCC’s Open Internet Order prohibited internet service providers from blocking, slowing down, or discriminating against content online. Repealing these net neutrality rules could lead to higher prices for consumers, slower internet traffic, and even blocked websites. A recent poll showed that 83 percent of Americans do not approve of the FCC’s action to repeal net neutrality rules.  

A copy of the CRA resolution can be found HERE.   Last week, the FCC’s rule repealing net neutrality was published in the Federal Register, leaving 60 legislative days to seek a vote on the Senate floor on the CRA resolutions. In order to force a vote on the Senate resolution, Senator Markey will submit a discharge petition, which requires a minimum of 30 Senators’ signature. Once the discharge petition is filed, Senator Markey and Senate Democrats will demand a vote on the resolution.

While there is considerable telecom hubris regarding the 5G rollout and increasing speculation that the next generation of wireless is not yet ready for Prime Time, the industry continues to make promises to Rural America that it has no intention of fulfilling. Decades-long promises to deliver digital Utopia to rural America by T-Mobile, Verizon and AT&T have never materialized.  

In 2017, the USDA reported that 29% of American farms had no internet access. The FCC says that 14 million rural Americans and 1.2 million Americans living on tribal lands do not have 4G LTE on their phones, and that 30 million rural residents do not have broadband service compared to 2% of urban residents.  It’s beginning to sound like a Third World country. Despite an FCC $4.5 billion annual subsidy to carriers to provide broadband service in rural areas, the FCC reports that ‘over 24 million Americans do not have access to high-speed internet service, the bulk of them in rural area”while a  Microsoft Study found that  “162 million people across the US do not have internet service at broadband speeds.” At the same time, only three cable companies have access to 70% of the market in a sweetheart deal to hike rates as they avoid competition and the FCC looks the other way.  The FCC believes that it would cost $40 billion to bring broadband access to 98% of the country with expansion in rural America even more expensive.  While the FCC has pledged a $2 billion, ten year plan to identify rural wireless locations, only 4 million rural American businesses and homes will be targeted, a mere drop in the bucket. Which brings us to rural mapping: Since the advent of the digital age, there have been no accurate maps identifying where broadband service is available in rural America and where it is not available.  The FCC has a long history of promulgating unreliable and unverified carrier-provided numbers as the Commission has repeatedly ‘bungled efforts to produce accurate broadband maps” that would have facilitated rural coverage. During the Senate Commerce Committee hearing on April 10th regarding broadband mapping, critical testimony questioned whether the FCC and/or the telecom industry have either the commitment or the proficiency to provide 5G to rural America.  Members of the Committee shared concerns that 5G might put rural America further behind the curve so as to never catch up with the rest of the country

The Wall Street Journal reports Huawei Manages to Make Smartphones Without American Chips. American tech companies are getting the go-ahead to resume business with Chinese smartphone giant Huawei Technologies Co., but it may be too late: It is now building smartphones without U.S. chips. Huawei’s latest phone, which it unveiled in September—the Mate 30 with a curved display and wide-angle cameras that competes with Apple Inc.’s iPhone 11—contained no U.S. parts, according to an analysis by UBS and Fomalhaut Techno Solutions, a Japanese technology lab that took the device apart to inspect its insides. In May, the Trump administration banned U.S. shipments to Huawei as trade tensions with Beijing escalated. That move stopped companies like Qualcomm Inc. and Intel Corp. from exporting chips to the company, though some shipments of parts resumed over the summer after companies determined they weren’t affected by the ban. Meanwhile, Huawei has made significant strides in shedding its dependence on parts from U.S. companies. (At issue are chips from U.S.-based companies, not those necessarily made in America; many U.S. chip companies make their semiconductors abroad.) Huawei long relied on suppliers like Qorvo Inc., the North Carolina maker of chips that are used to connect smartphones with cell towers, and Skyworks Solutions Inc., a Woburn, Mass.-based company that makes similar chips. It also used parts from Broadcom Inc., the San Jose-based maker of Bluetooth and Wi-Fi chips, and Cirrus Logic Inc., an Austin, Texas-based company that makes chips for producing sound.

Google on Wednesday was hit by a lawsuit from a group of state attorneys over alleged violation of antitrust laws by its Android app store.

Attorneys general for 36 states and the District of Columbia sued the Big Tech company in a 144-page complaint filed in a Northern California federal court. The group alleges that Google’s Play store for Android apps violates antitrust laws.The complaint centers on the control Google is able to exert on its Play store, allowing it to collect commissions of up to 30 percent on digital transactions within apps installed on Android-powered smartphones. Those devices represent more than 80 percent of the worldwide smartphone market.Led by Utah, North Carolina, Tennessee, New York, Arizona, Colorado, Iowa, and Nebraska, it marks the fourth major antitrust lawsuit filed by U.S. government agencies against the company since October 2020.Other lawsuits filed against Google include a complaint filed by a bipartisan coalition of states, and one filed by the Department of Justice. It echoes allegations made against the company by mobile game maker Epic Games in August 2020. That case is awaiting trial.The complaint contends that Google has deployed various tactics and set up anticompetitive barriers to ensure it distributes more than 90 percent of the apps on Android devices—a market share that the attorneys general argue represents an illegal monopoly. It also alleges Google has been abusing that power to reap billions of dollars in profit at the expense of consumers, who wind up paying higher prices to subsidize the commissions, and the makers of apps who have less money and incentive to innovate.

Facebook's thousands of employees are reportedly unable to use the company's internal iOS apps after it was caught running a data-gathering research app that violated Apple's developer policies. Apple said on Wednesday that it had revoked Facebook's certificates giving it access to a special enterprise program that companies can use to distribute internal apps and tools outside the public App Store. The move has caused internal Facebook apps to stop working, creating a chaotic situation that the company has deemed a critical problem, The Verge reported. Facebook employees reportedly can't open company apps for transportation and the lunch menu, along with beta versions of Facebook apps like Messenger and Instagram.

A Chinese internet technology company has announced a plan to provide free satellite internet worldwide by 2026, joining companies like SpaceX, Facebook and Google in the mission to run a global internet service.

Shanghai-based company LinkSure Network, which says its mission is to bridge the world's digital inequalities, unveiled on Tuesday the first satellite in their ambitious plan to ensure that everyone in the world can access the internet free of charge.The plan — dubbed the "LinkSure Swarm Constellation System" — would see 272 satellites set at different orbits and heights in order to span the entire globe.The first satellite, LinkSure No 1, is set to launch in north-west China in 2019 from the Jiuquan Satellite Launch Centre as part of the payload on board one of China's Long March rockets.Ten further satellites will be sent into orbit by 2020.

Google and Facebook, the No. 1 and No. 2 players in online advertising, made a secret illegal pact in 2018 to divide up the market for ads on websites and apps, according to an antitrust suit filed Wednesday against the search giant. The suit — filed by Texas and eight other states — alleges that the companies colluded to fix prices and divvy up the market for mobile advertising between them.

The allegation that Google teamed up with Facebook to suppress competition mirrors a major claim in a separate antitrust suit the Justice Department filed against the company in October: that Google teamed up with Apple to help ensure the continued dominance of its search engine. Such allegations provide some of the strongest ammunition yet to advocates who argue that the U.S. major tech companies have gotten too big and are using their power — sometimes in conjunction with each other — to control markets.Many of the details about the Google-Facebook agreement, including its specific language, are redacted from the complaint. But the states say it “fixes prices and allocates markets between Google and Facebook as competing bidders in the auctions for publishers’ web display and in-app advertising inventory.”

The complaint alleges that the agreement was prompted by Facebook’s move in 2017 to use “header bidding” — a technology popular with website publishers that helped them increase the money they made from advertising. While Facebook sells ads on its own platform, it also operates a network to let advertisers offer ads on third-party apps and mobile websites.

The European Commission has opened formal antitrust investigations to assess whether Apple's rules for app developers on the distribution of apps via the App Store violate EU competition rules. The investigations concern in particular the mandatory use of Apple's own proprietary in-app purchase system and restrictions on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps. The investigations concern the application of these rules to all apps, which compete with Apple's own apps and services in the European Economic Area (EEA). The investigations follow-up on separate complaints by Spotify and by an e-book/audiobook distributor on the impact of the App Store rules on competition in music streaming and e-books/audiobooks.

iPhone and iPad users can only download native (non web-based) apps via the App Store. The Commission will investigate in particular two restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices: (i)   The mandatory use of Apple's own proprietary in-app purchase system “IAP” for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP. (ii)  Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.

Here are some key takeaways from the hearing:

oogle on Monday confronted the second major U.S. antitrust trial in two months to cast the internet powerhouse as a brazen bully that uses its immense wealth and people’s dependence on one of its main products to stifle competition at consumers’ expense. The trial that opened in a San Francisco federal court targets the Google Play Store that distributes apps for the company’s Android software that powers virtually all the world’s smartphones that aren’t made by Apple. The case, stemming from a lawsuit filed by video game maker Epic Games, alleges Google has created an illegal monopoly on Android apps primarily so it can boost its profits through commissions ranging from 15% to 30% on purchases made within an app. “The result of what Google is doing is higher prices, lower quality and less choice for everybody,” Epic attorney Gary Bornstein said Monday during a 45-minute opening statement before the 10-person jury that will decide the case.